household_welfare.txt

household welfare
Household welfare is the material
welfare of the representative household
in the economy.

Generally an introduction of a tax
decreases household welfare as the
household allocates its resources to
maximize its material welfare. When an
individual is taxed, household resources
cannot be allocated as freely, leading
to an inferior outcome.

However, we are not measuring direct or
indirect benefits of the decrease in
pollution, so it's possible that the
actual welfare increases.